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An Analytical Study on Impact of Mgnregs on Agricultural Labour Supply of Kozhikode District

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An Analytical Study on Impact of Mgnregs on Agricultural Labour Supply of Kozhikode District AN ANALYTICAL STUDY ON IMPACT OF MGNREGS ON AGRICULTURAL LABOUR SUPPLY OF KOZHIKODE DISTRICT Minor Research Project Report Submitted to the University Grants Commission, New Delhi In partial fulfillment of the requirements for the Completion of Minor Research Project By MUHAMMED SALIM. K.C Assistant Professor POST GRADUATE AND RESEARCH DEPARTMENT OF COMMERCE GOVT. COLLEGE MADAPPALLY VADAKARA-2 KOZHIKODE DECLARATION I hereby declare that the project report entitled “AN ANALYTICAL STUDY ON IMPACT OF MGNREGS ON AGRICULTURAL LABOUR SUPPLY OF KOZHIKODE DISTRICT” is a bonafide Minor Research Project work done by me and I further declare that this report has not been submitted anywhere for the award of any degree or other recognition. Madappally Muhammed Salim. K.C Date: CERTIFICATE This is to certify that Minor Research Project titled “AN ANALYTICAL STUDY ON IMPACT OF MGNREGS ON AGRICULTURAL LABOUR SUPPLY OF KOZHIKODE DISTRICT” is an original work done by Muhammed Salim. K.C, Assistant Professor, Post Graduate and Research Department of Commerce, Govt. College Madappally. He is permitted to submit the report to University Grants Commission. Place: Madappally Principal Date: Acknowledgement I am very happy with completion of this project work and for me it is a great achievement. I am indebted to many people for their immense help and support for the completion of this work. With these few word officially I can convey my thanks but I cannot convey the depth of my gratitude to all those who helped me a lot. I express my sincere thanks to the Principal, Govt. College Madappally and my gratitude to Head of the Department and all the other colleagues in the Post Graduate and Research Department of Commerce for their cooperation and valuable suggestions. I am indebted to the University Grants Commission very deeply for sanctioning this project and allotting fund for the research work. I express my thanks to all my Post Graduate students who were always with me for all the assistance while conducting this study. Moral and mental support from my family including my parents, wife and children were inevitable for the completion of this task otherwise I could not be able to complete this work in time. Moreover I am very thankful to the god almighty for giving health and strength to complete this work successfully. Muhammed Salim. K.C Abstract Mahatma Gandhi National Rural Employment Guarantee Act is a flagship programme of central government of India for eradicating poverty from Indian economy. Around 60 % Indian population is living rural area and most of them are suffering from severe poverty and unemployment. National Rural Employment Act, 2005, enacted on 25th August 2005. NREGA is a first in its kind, passed by Government of a nation in the world. This Act guarantees 100 days employment for rural unemployed mass willing to do unskilled manual work. The act came into force from February 2006 initially in 200 backward district of the nation and then it extended to all rural districts of India in two other phases. The Act was initially called National Rural employment Guarantee Act (NREGA) later renamed as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in 2009. Some challenges of Indian economy even today are Poverty, Development of rural India and Building infrastructure. Country need to invest more in health and education of the growing population. Human capital is the biggest asset of India but we don’t have that much opportunity to exploit this strength and this less employment opportunity contributing more on poverty of the economy. MGNREGA is the most significant movement from Central Government of India after Independence and it ensured grass root level participation of every citizen of India. Act ensures selection of beneficiaries through a democratic process and a multiple layer social audit and transparency mechanism to keep the proposed objectives. Planning of work under MGNREGA at village level contribute more on sustainable and equitable development of villages. Another achievement of this programme is that it has caused for the improvement in quality of life of rural household who were migrating to cities for the search of employment, by channelizing rural workforce towards developmental activities at own village level. Beneficiaries enrolled to this programme mostly are unskilled rural mass who were jobless or working in agricultural sector before joining into this scheme. As far as State of Kerala is concerned market wage rate has been more than double of the wage guaranteed by MGNREGA always. Hence enrollment rate of males are very less if we are comparing with rate of females. While making an analysis on the personal profile of those who enrolled in to this scheme it shows that most of the male members joined into this scheme are not capable to do job which require heavy efforts. Female members who do not have regular employment are also enrolled to this scheme. This study try find out the positive and negative impact of MGNREGA on the agricultural labour supply of Kozhikode district, Kerala. MGNREGA does not permit any direct involvement in agricultural related work or work they are repetitive in nature. Under a descriptive research framework, through rigorous statistical procedure on the multiple responses of workers and farmers, the study was able to make out prolific finding relevant to future of MGNREGA and its impact on the agricultural labour supply. Study reveals that programme has not affected to the supply of labourers into the agricultural sector but in case of female workers there is small shortage because they prefer to work under MGNREGA when the works are available. It is found that the scheme have big role in the eradication of poverty in rural area and it has caused for the social and economic empowerment of women who enrolled into the programme. Beneficiaries have certain complaint on the delay in transfer of wages, non-availability of guaranteed days of employment and other procedural delay in the operational side of the programme. Contents Page Chapters No Chapter 1 Introduction 1-14 1.1 Introduction of the study 1 1.2 Origin of research Problem 2 1.3 Significance of the research study 3 1.4 Scope of the study 6 1.5 Objective of the research study 6 1.6 Definition of terms used 7 1.7 Hypothesis 10 1.8 Research Design 10 1.8.1 Source of Data 1.8.2 Tools used for Survey 1.8.3 Survey Area 1.8.4 Measurement Variables 1.9 Sampling Design 12 1.9.1 Population for study 1.9.2 Sample size 1.9.3 Sample frame and selection of samples 1.10 Period of reference 13 1.11 Tools for Data Analysis 14 1.12 Limitations of the study 14 Chapter 2 Review of Literature 15-25 2.1 Introduction 15 2.2 Literature review 15 2.3 Summary 25 Chapter 3 Rural Employment Guarantee Schemes in India- An 26-70 Overview 3.1 Introduction 26 3.2 Employment Generating Programmes Implemented in India 29 3.2.1 Self-employment programmes in India 3.3 Wage Employment Programmes in India 36 3.4 Mahatma Gandhi National Rural Employment Guarantee 40 Act (MGNREGA) 3.4.1 Objectives of MGNREGA 3.4.2 The Salient design features of MGNREGA 3.4.3 Funding Pattern of MGNREGA 3.4.4 Qualifications for employment and rights of workers under the Act. Page Chapters No 3.4.5 Implementing and monitoring agencies of the scheme. 3.4.6 Performance of MGNREGA 3.5 MGNREGA in Kerala 59 3.5.1 Unemployment in Kerala 3.5.2 Performance of MGNREGA in Kerala 3.6 MGNREGA and Kozhikode District 69 Chapter 4 Impact of MGNREGS on Agricultural Labour Supply of 71-93 Kozhikode District 4.1 Introduction 71 4.2 Data Analysis 72 4.2.1 Age analysis of the respondents 4.2.2 Gender wise age analysis of the respondents 4.2.3 Religion and Cast analysis of the respondents 4.2.4 Educational qualifications of the respondents 4.2.5 Marital status of the respondents 4.2.6 Year of enrollment to MGNREGS 4.2.7 Occupation of the respondents before enrolling into MGNREGA 4.2.8 Source of worker’s income other than MGNREGA 4.2.9 Annual family income of the respondents 4.2.10 Contribution of MGNREGS wage to individual income of respondents 4.2.11 Market wage rate analysis 4.2.12 Relationship between increase in MGNREGA wage and increase in rural average agriculture sector wage 4.2.13 Preference of Agricultural labour over MGNREGA 4.2.14 Social inclusion of MGNREGA workers 4.2.15 Economic empowerment of MGNREGA workers 4.2.16 MGNREGA and financial inclusion of rural women 4.2.17 Problems faced by MGNREGS workers 4.2.18 Improvements in MGNREGA expected by the workers 4.3 Conclusion 92 Chapter 5 Finding, Policy Recommendation and Conclusion 93-101 5.1 Introduction 93 5.2 Findings 93 5.3 Policy Recommendations 97 5.4 Conclusion 100 5.5 Contribution of the study 101 5.6 Scope of further research 101 Bibliography 102-105 Appendix 106-110 List of Tables Table Page Particulars No. No. 1.1 Detailed description of survey area 11 3.1 Employment Growth in India (in Million) 27 3.2 Growth of unemployment in India 27 3.3 Details of assistance granted and beneficiaries of IRDP 30 3.4 Details of assistance given and performance of TRYSEM 31 3.5 Financial details of DWCRA 32 3.6 Financial analysis of SITRA 33 3.7 Performance analysis of MWS 34 3.8 Expenditure and benefits details of SGSY 35 3.9 Phases of MGNREGA implementation 41 3.10 Implementation process in Kerala 41 3.11 Steps of Indian Journey towards MGNREGA (1952-2009) 42 3.12 Multiple Goals of MGNREGS 46 3.13 Major Changes in MGNREGA (2006-2014) 47 3.14 Notified Wage and its enhancement from 2006 to 2014 (Rs.
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